Nearly every Maryland municipality received State and Local Fiscal Recovery Funds (SLFRF) as part of the American Rescue Plan Act (ARPA) in 2021. Roughly a year from now every municipal recipient will need to have obligated those funds or risk having to return that funding to the U.S. Treasury.

A recent report from the U.S. Government Accountability Office (GAO) shows that nearly 50% of local governments had not obligated SLFRF funds as of March 31, 2023. The Maryland Municipal League cannot stress enough the urgency to obligate and spend these funds, especially with the need to pass FY2025 budgets by June 30, 2024. 

For additional background, including what it means to “obligate” funds, see this article from the National League of Cities.  If you have specific questions concerning the use of SLFRF funds and reporting requirements, we encourage you to visit the state’s Municipal Technical Assistance Program (MTAP) or email them at [email protected].